Electric hybrid vehicles have long been regarded as the future of the auto industry. By combining a gasoline-powered combustion engine and an electric battery drive system, these energy-efficient vehicles help to lower emissions and is reducing the dependence on conventional fuels. The aforementioned factors along with the superior performance of hybrid vehicles is leading to the steadfast growth of the global hybrid vehicles market.

The global hybrid vehicles market is expected to be valued at US$193.29 bn by 2024 increasing from US$75.52 bn in 2015 at a CAGR of 10.3% between 2016 and 2024, finds a market study by Transparency Market Research (TMR).

In this blog spot, TMR analysts present some key aspects of the global hybrid vehicles market that have been observed in the present-day scenario:

Q. How are mechanical and functional capabilities of hybrid vehicles advantageous to the growth of this market?

A. The demand for hybrid vehicles is rising against the backdrop of increasing environmental concerns of conventional vehicles. The alarming rise in air pollution and its implications on human health and the environment has forced governments and consumers to opt for alternate vehicles.

The mechanical configuration of hybrid vehicles gives them an edge over their conventional counterparts. Hybrid vehicles function without separate engines and alternators and usually comprise multiple motor or generators that are combined for starting internal combustion engine. This arrangement of motor or generators delivers a better performance as compared to what is delivered by conventional vehicles.

Q. What are the factors holding back the market’s growth?

A. Though the demand for hybrid vehicles is on the rise, the growth of this market is slowed due to certain factors. While the market extends huge growth opportunity for new players, huge capital and skilled resources required for setting up and functioning of hybrid vehicles’ manufacturing units is challenging small and medium sized companies to enter into this market.

The high cost involved in the research and development of hybrid vehicles is being percolated to the selling price, thereby discouraging several end users from purchasing these vehicles. Furthermore, end users are also skeptical regarding the usage of hybrid vehicles which is likely to hamper the market’s growth.

Q. How are regional markets for hybrid vehicles expected to fare in terms of growth?

A. Asia Pacific is anticipated to lead the pack among all other regional markets for hybrid vehicles. The booming automotive industry in this region coupled with the increasing investments by foreign companies in emerging economies will fuel the growth of this regional market. Moreover, the rising disposable incomes, changing lifestyles, and rising awareness about the advantages of hybrid vehicles in emerging economies such as China and India is having a positive impact on this regional market.

The rising private equity investments and mergers and acquisitions of automotive companies has benefited the growth of the global hybrid vehicles market.